Xerox Acquires XLConnect
Xerox (Rochester, NY) has acquired XLConnect Solutions (Exton, PA) and its parent organization, Intelligent Electronics, for $415 million in cash. Xerox will acquire the 20% of publicly held XLConnect shares for $20 each, and will pay $7.60 for each share of Intelligent Electronics stock. XLConnect provides network management, consulting, design, and integration services. Xerox president and COO G. Richard Thoman says the acquisition gives Xerox "hundreds of talented and trained network specialists who will design and build publishing, workflow and other document solutions." The acquisition complements the company's document services outsourcing business, added chairman and CEO Paul Allaire. XLConnect's senior management team will remain with the company, including president and COO Timothy Wallace, who becomes president and chief executive officer of the newly acquired company. Xerox' credibility, stability, and strong outsourcing business "will significantly enhance our ability to compete in the fast-growing market for information technology services," said Wallace. The earnings impact in 1998 will be about neutral, according to Xerox executive VP and CFO Barry Romeril.